They’ll help local investors buy local (businesses)
Leah Kodner, Business Librarian from the James J. Hill Center interviews 1 Million Cup presenters each month for the Startup Showcase feature in the Pioneer Press. Recently she connected with presenter Patrick Saxton. See interview as seen in the Pioneer Press Startup Showcase on July 30, 2017.
Equity crowdfunding allows entrepreneurs to sell private securities in their company to investors. These offerings are usually restricted to large “accredited” investors who meet certain wealth and income standards. Now, Minnesota has made it possible to sell these securities to any resident of Minnesota. The MNvest law, which went into effect in June 2016, makes it legal for businesses to release equity crowdfunding offerings to Minnesota residents regardless of their wealth. Patrick Saxton saw the opportunities that this new law provided and formed MNstarter to help businesses launch successful equity crowdfunding campaigns.
- Patrick Saxto
- Age: 35
- City you live in: White Bear Lake
- City of birth: Blue Earth, MN
- High school attended: North St. Paul
- Colleges attended: Graduate of Metropolitan State. Attended University of North Dakota, Drake University, and Century College
- Name of company: MNstarter
- Website: www.mnstarter.com
- Business start date: September 2016
- Number of employees: 5 co-founders and 1 intern
What led to this point?
I worked with the Department of Veterans Affairs, first as a business analyst in the benefits division, then as the primary Information Security and FISMA policy writer for 23 regional offices. I spent my remaining time in government working at the Small Business Administration (SBA), helping entrepreneurs start and grow their small businesses and working to expand SBA’s reach in Minnesota. I am now working as a software engineer and completing my degree in computer application development at Metropolitan State University.
What is your business?
MNstarter is a public benefit corporation whose mission is to grow Minnesota companies through local investment. MNstarter is a registered MNvest portal operator and advocate for capital crowdfunding.
MNstarter offers free access to the MNstarter.com MNvest crowdfunding portal along with best practice guides for self-service capital crowdfunding campaigns. It also offers access to the MNstarter Resource Library, which is an organized group of “resource partners” who can work directly with entrepreneurs to navigate legal, finance and marketing considerations to get their capital campaigns set up.
Where do you go for help when you need it?
We go to the MNstarter Resource Library and the folks at MNvest.org, the outreach and advocacy group for the MNvest legislation.
What is the origin of the business?
MNstarter was started after I watched a 1 Million Cups presentation at the James J. Hill Center by Zach Robbins and Scott Cole. I went back to our office and started to talk about the MNvest law and over the next few weeks we had a core group of us that were ready to make MNstarter a real company. About three months after we started, Judy Wright, our fifth and final founder, found us on the internet and emailed us the same week we had decided to go looking for a finance specialist to round out our group. Since then, the five of us have been working to help Minnesotans find ways to meet their business and investment goals.
What problems does your business solve?
MNstarter solves the need created by new Minnesota MNvest legislation that permits intrastate investment crowdfunding through securities offerings exempt from Securities Act registration. The MNVest law allows companies to sell equity in their companies to Minnesota residents. Minnesota residents not considered “accredited investors” have equal opportunity to invest in these offerings. Under most federal rules, non-accredited investors would not have this opportunity. This creates a larger pool of possible investors. It also gives all Minnesotans the opportunity to invest locally.
MNvest went into effect in June 2016, and requires that these MNvest “offerings” must be made online through a “MNvest Portal” registered with the Minnesota Department of Commerce.
Lots of times we hear “buy local”. At MNstarter, we like to say, “buy local (businesses).” CLICK HERE FOR FULL ARTICLE
Interviewer: Leah Kodner
Business Librarian, James J. Hill Center
You can hear from startups like this one each Wednesday, 9-10 a.m. at the James J. Hill Center during 1 Million Cups St. Paul. The James J. Hill Center is a nonprofit in downtown St. Paul that provides access to business research, educational programming and a place to work. To keep updated on what startup is presenting next or to apply to present, visit 1millioncups.com/stpaul.